Downey reaches deal to sell land near Promenade

DOWNEY — Downey has reached a deal to sell nearly nine acres of publicly-owned land near the Promenade shopping center.

According to terms of the deal, the City of Downey would receive a minimum of $10.6 million for 8.76 acres of vacant land located near Bellflower Boulevard and Apollo Way, on the eastern side of the Promenade.

The buyer is listed at Holdings Downey LLC, which holds a long-term lease on the property.

Additionally, Holdings Downey LLC will pay the city one-half of proceeds in excess of $15,263,424 from the sale or use of the property.

In a staff report, city officials said the $10.6 million will provide “a significant cash infusion” to the city, “which will be helpful in light of the impacts of the COVID-19 pandemic.”

Holdings Downey LLC has committed to developing a minimum 150-room hotel on the property. Medical offices and some retail are also expected to be built there.

The transaction requires approval by the City Council, which is scheduled to vote on the deal on Tuesday.